(AOF) – Bayer published solid quarterly results thanks to strong demand for its seeds and pesticides in a context of soaring agricultural prices. The title of the German chemical and pharmaceutical giant, however, only gained 0.4% to 58.98 euros. Analysts regret that the Leverkusen group did not raise its annual targets in the wake of this publication. Over the first three months of the year, Bayer’s EBITDA reached 5.25 billion euros, up 27.5%. The consensus gave it at 4.65 billion.
The reason for this clear outperformance is the strength of the “Crop Science” branch, whose Ebitda jumped 49.9% to 3.67 billion, or 70% of the group’s Ebitda. Analysts expected 2.95 billion.
On the other hand, the “Pharma” branch suffered. Its Ebitda fell by 7.3% to 1.389 billion.
In terms of sales, those of “Crop Science” increased by 21.6% at constant scope and exchange rates to reach 8.447 billion, driven by volumes (+5.7%) and prices (+15.9%). The turnover of “Pharma” increased by 2.6% at constant scope and exchange rates to stand at 4.624 billion.
In total, Bayer’s turnover shows an increase at constant scope and exchange rates of 14.3% to 14.639 billion.
Regarding its prospects, the German giant said he was confident despite the uncertainty caused by the global crises. It confirms its forecasts unveiled last March, representing a significant increase in its results. Revenue is expected at 46 billion euros, up 5% at constant scope and exchange rates. The Ebitda margin is forecast at 26%, and the Ebitda at 12 billion.
Stifel confirmed its Buy recommendation and its price target of 86 euros on the stock, underlining the unchanged “guidance”.
Jefferies also maintained its Buy recommendation, but with a more cautious target price of 64 euros. The broker recalls that the consensus is more optimistic than Bayer for 2022 with an expected Ebitda margin of 26.4%.
Kepler Cheuvreux reiterated its Buy recommendation and its price target of 69 euros, hailing a robust quarter despite rising costs.